a. False. The long run potential growth rate always depends on low rates of inflation. b. True, but only sometimes. At very high rates of inflation, long run potential growth rate declines. C. False. When expected inflation is different from actual inflation, the potential growth rat suffers. d. True. The long run potential growth rate is determined by the factors of production, not prices.

a. False. The long run potential growth rate always depends on low rates of inflation. b. True, but only sometimes. At very high rates of inflation, long run potential growth rate declines. C. False. When expected inflation is different from actual inflation, the potential growth rat suffers. d. True. The long run potential growth rate is determined by the factors of production, not prices.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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